IT stocks edge higher as rupee weakens against dollar

Key benchmark indices trimmed further gains in mid-afternoon trade. The barometer index, the S&P BSE Sensex was currently up 155.47 points or 0.57% at 27,397.25. The market breadth indicating the overall health of the market was strong. IT stocks rose as rupee edged lower against the dollar.

In the foreign exchange market, the rupee edged lower against the dollar due to appreciation of the greenback against other currencies overseas.

Brent crude futures rose today, 29 December 2014 after dropping for the past two sessions, as escalating clashes in Libya stoked worries about supply from the OPEC member.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 39.97 crore on Friday, 26 December 2014, as per provisional data.

In overseas markets, European stocks rose today, 29 December 2014 ahead of a presidential vote that threatens the future of Greece's international bailout. Asian stocks edged higher today, 29 December 2014 as the rally on Wall Street boosted risk appetite. US stocks ended higher on Friday, 26 December 2014 with both the Dow Jones Industrial Average and S&P 500 indices closing at records in a broad rally, though trading was light with many market participants still out for the Christmas holiday.

At 14:19 IST, the S&P BSE Sensex was up 155.47 points or 0.57% at 27,397.25. The index gained 265.47 points at the day's high of 27,507.25 in early trade, its highest level since 24 December 2014. The index rose 24.71 points at the day's low of 27,266.49 in early trade.

The CNX Nifty was up 43.10 points or 0.53% at 8,243.80. The index hit a high of 8,279.15 in intraday trade, its highest level since 24 December 2014. The index hit a low of 8,214.70 in intraday trade.

The market breadth indicating the overall health of the market was strong. On BSE, 1,732 shares gained and 1,154 shares fell. A total of 137 shares were unchanged.

The BSE Mid-Cap index was up 78.83 points or 0.78% at 10,194.68 and the BSE Small-Cap index was up 65.27 points or 0.6% at 10,960.16. Both these indices outperformed the Sensex.

Among the 30-share Sensex pack, 26 gained and the rest declined. Sesa Sterlite (up 3.76%), Hindalco Industries (up 3.09%) and Coal India (up 2.26%) gained.

Mahindra & Mahindra (down 0.57%), Axis Bank (down 0.56%) and SBI (down 0.15%) edged lower from the Sensex pack.

IT stocks rose as rupee edged lower against the dollar. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports.

Infosys (up 0.37%), Oracle Financial Services Software (up 1.63%), Tech Mahindra (up 0.67%), TCS (up 0.78%), HCL Technologies (up 0.78%) and Wipro (up 0.33%) gained.

Lupin rose 1.24% on buzz that the company is eyeing acquisitions in global market in US, Latin America and Europe. According to reports, to expand its presence beyond India, Lupin is reportedly eyeing acquisitions in global market in US, Latin America and Europe. The company will continue to be on the lookout for meaningful targets in the inhalation, complex injectables and derma space, Ramesh Swaminathan, CFO, Lupin was reportedly quoted as saying.

In the foreign exchange market, the rupee edged lower against the dollar due to appreciation of the greenback against other currencies overseas. The partially convertible rupee was hovering at 63.6825, compared with its close of 63.57 on Friday, 26 December 2014.

Brent crude futures rose today, 29 December 2014 after dropping for the past two sessions, as escalating clashes in Libya stoked worries about supply from the OPEC member. Brent for February settlement was up 45 cents at $59.90 a barrel. The contract had declined 79 cents or 1.33% to settle at $59.45 a barrel on Friday, 26 December 2014.

European stocks rose today, 29 December 2014 ahead of a presidential vote that threatens the future of Greece's international bailout. Key benchmark indices in UK, Germany and France were up 0.27% to 0.3%. Germany's DAX fell 0.29%.

Members of Greece's parliament will cast their ballots at noon in Athens with PM Samaras needing 180 votes in the 300-seat chamber to appoint his nominee, Stavros Dimas, as head of state. Failure to elect Dimas will lead to a general election in late January or early February, a few weeks before the nation's 240 billion euros ($292 billion) bailout expires.

Asian stocks edged higher today, 29 December 2014, as the rally on Wall Street boosted risk appetite. Key benchmark indices in Singapore, China, Taiwan, Hong Kong, Japan, Indonesia rose by 0.18% to 1.82%. Key benchmark indices in Japan and South Korea fell 0.5% to 1.04%.

According to reports, China has cut its target for the growth of external trade to 6% for 2015, compared with a 7.5% target this year. That is considerably slower than the official growth rate of the entire economy, which expanded 7.4% from a year earlier in the first three quarters, reports added.

As per reports, China's central bank, the People's Bank of China will allow banks to make more loans from their deposit bases in a further step toward liberalisation of the financial sector. China will also expand a trial programme next year to allow the creation of purely private banks and ease the entry of private capital into the banking sector, the China Banking Regulatory Commission reportedly said in a statement.

Japan's Cabinet approved 3.5 trillion yen ($29 billion) in fresh stimulus on Saturday, 27 December 2014 for the ailing economy, pledging to get growth back on track and restore the country's precarious public finances.

Trading in US index futures indicated that the Dow could fall 3 points at the opening bell today, 29 December 2014. US stocks ended higher on Friday, 26 December 2014 with both the Dow Jones Industrial Average and S&P 500 indices closing at records in a broad rally, though trading was light with many market participants still out for the Christmas holiday.

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